Malaysia's central bank said on Thursday that it has given approval to five foreign commercial banks, so that they can open shop here as part of the current liberalization of its financial services sector.

Bank Negara Malaysia said that it will issue commercial banking licenses to Japan's Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp., France's BNP Paribas SA, Indonesia's PT Bank Mandiri and National Bank of Abu Dhabi.

It said in a report that the novel commercial banks are anticipated to add to the assortment of the industry, prove to be of great help in new areas of development, which comprises of green technology and makes possible Malaysia's move in the direction of becoming a high-income financial system.

No additional particulars were immediately obtainable on when the banks will resume their operations.

Prime Minister, Najib Razak, who commenced with his office in the month of April last year, has been able to simplify investment rules, so as to help encourage development in Southeast Asia’s third-largest financial system.

The nation needs to accomplish average yearly increase of 6% during the subsequent five years, in order to become a high-income country by the year 2020, the Government said on June 10.